Paytm Q2 results: Net loss narrows to Rs 292 cr as revenue jumps 32%

Fintech firm Paytm posted a narrower net loss in September quarter of Rs 292 crore, led by an increase in GMV, merchant subscription revenues, and growth of loans distributed through its platform. Its net loss in the year-ago period was Rs 571.5 crore.

Paytm, one of India's first start-ups to go public and whose parent company is One 97 Communications Ltd, said revenue increased 32% to Rs 2,519 crore in the July-September quarter, from Rs 1,914 crore a year earlier.

On Friday, Paytm's scrip on BSE closed 1.2% higher at Rs 980.05.

"Stronger with every quarter 💪: In Q2FY24, our revenue jumped 32% YoY to ₹2,519 Cr and EBITDA before ESOP nearly doubled to ₹153 cr this quarter!," said Paytm on X platform (formerly Twitter). CEO Vijay Shekhar Sharma said, "Thank you for your continued support."

Paytm, which also rents out devices that verbally confirm online payments to merchants, said revenue at its core payments business rose 28%. Financial services revenue, which includes its loans business, rose 64%. Loans distributed more-than-doubled in value to Rs 16,211 crore.

Operating profit -- which Paytm defines as core profit before cost of employee stock-owing plans -- came in at Rs 153 crore for the quarter ended Sept. 30, compared with a loss of Rs 166 crore a year earlier. Core profit in the first quarter was Rs 84 crore.

"Our loss for the quarter reduced 49% YoY to Rs 292 crore from Rs 571 crore. Our EBITDA before ESOP cost has almost doubled to Rs 153 crore as compared with Rs 84 crore in Q1FY24 (excluding UPI incentives). On a yearly basis, we posted an improvement of Rs 319 crore in EBITDA before ESOP costs. Our EBITDA before ESOP margin stood at 6% on account of an increase in contribution margin and operating leverage. We have managed to increase EBITDA while investing for growth. As we continue to see opportunities to garner market share, and our profitability remains on track, we are choosing to invest in growth," said Paytm in a post-Q2 earnings' release. 

Paytm said its payments revenue increased 28% YoY to Rs 1,523 crore, while its payments profitability improved with net payment margin expanding 60% YoY to Rs 707 crore.